Question: I know that the mean return is 11%, the variance is NOT .06, and the covariance is NOT 0 Please help me find Variance and
I know that the mean return is 11%, the variance is NOT .06, and the covariance is NOT 0
Please help me find Variance and Covariance
Consider the following table: TTT Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 -40% -13 Mild recession 0.20 -20% 19 Normal growth 12% 0.40 25% Boom 0.30 308 -9% a.Calculate the values of mean return and variance for the stock fund. When calculating the variance, use percents, not decimals. For example, if a return is 10%, use the value 10 in your variance calculations, not 0.10. (Do not round intermediate calculations. Round "Mean return" value to 1 decimal place and "Variance" to 2 decimal places.) Mean return Variance b.Calculate the value of the covariance between the stock and bond funds. Again, use percents and not decimals for your calculations.That is, for 10% use the value of 10, not 0.1O, for all your calculations. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Covariance
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